PHI’s CEO comments on the approved US listing
Phase Holographic Imaging has been approved for a dual US listing in addition to its primary listing on the Swedish Spotlight market. What does this mean for the company’s shareholders, and how might it impact the company’s long-term valuation? BioStock reached out to PHI’s CEO Patrik Eschricht to discuss this and the upcoming redemption of the TO4 warrants that could potentially raise SEK 20.8 million in October.
The backbone of Phase Holographic Imaging’s (PHI) commercial system is “Quantitative Phase Imaging” (QPI), a technology that assesses cell culture quality without harming the cells, unlike traditional methods. PHI envisions its technology to make cell-based therapies safe, affordable and accessible for patients.
During the last two years, the Lund-based company has focused its efforts on pivoting to regenerative medicine, a discipline that aims to repair or regenerate cells, tissues, and organs. QPI’s precise monitoring makes it a promising technology for the cell therapy manufacturing market, fit to seamlessly integrate into automated workflows and avoid the need to remove cells from the process, unlike other quality control methods.
Approved dual listing in the US
Last month, PHI applied for a dual listing on the US-based OTCQB Venture Market, aiming to give US investors opportunities to invest in the company. This move was designed to strengthen PHI’s presence in the US market and the regenerative medicine sector. The application was approved, and PHI’s shares (OTCQB:PHIXF) are now also traded in the US.
PHI’s CEO Patrik Eschricht visited the OTC Market Center together with Board member Ivan Jurkovic, and Chairman of the Board, Goran Dubravčić. Meeting up with them in person in New York was also proposed new Board member John Moore.
Warrants of series TO 4 in October
Meanwhile, PHI is also eyeing another upcoming milestone – the redemption of warrants of series TO 4. Each warrant entitles to subscribe for one new share in PHI from September 12 to October 3, 2024. Upon full exercise at the highest exercise price, the warrants will provide the company with approximately SEK 20,8 million before issue costs.
»The dual listing on the OTCQB market represents a significant step in making PHI’s shares more accessible to US investors« – Patrik Eschricht
Comments from the CEO
BioStock reached out to PHI’s CEO, Patrik Eschricht, to discuss the dual listing and to learn more about recent events in the company.
What does the approved dual US listing mean for PHI’s shareholders? Can you discuss the pros?
– The dual listing on the OTCQB market represents a significant step in making PHI’s shares more accessible to US investors. This listing increases our visibility in the US, aligning with our strategic focus on expanding into the regenerative medicine market. It not only broadens our investor base in a major market like the US but also potentially boosts our stock’s trading volumes and investor confidence. This strategic move is designed to enhance liquidity and increase shareholder value, leveraging the US market’s vast opportunities.
What are the potential downsides to dual listing?
– Dual listing introduces additional administrative responsibilities. However, the benefits of increased accessibility for international investors, improved liquidity, and enhanced shareholder value significantly outweigh these administrative challenges.
How does the trading work with the dual listing, and does it affect previous Swedish shareholders?
– Trading on the OTCQB is facilitated by a market maker who sets buy and sell prices, ensuring seamless transactions for US investors. Trades made in the US are promptly registered in Spotlight, maintaining transparency. If trading is done in the US when the Swedish stock market is closed (due to the time zone difference), it will be registered on the next trading day when the Spotlight market opens. The dual listing does not impact the holdings of Swedish shareholders but enhances liquidity and value, benefiting all shareholders and supporting PHI’s continued growth.
In January, the Wake Forest Institute for Regenerative Medicine, a key partner for PHI, received a substantial US National Science Foundation grant of up to $160 million. Following this, PHI participated in the inaugural Piedmont Triad Regenerative Medicine Engine Ecosystem Summit. Could you elaborate on the potential impacts of this grant on PHI’s operations and any strategic opportunities that have arisen from your involvement in the summit?
– The NSF grant awarded to WFIRM significantly bolsters its research capabilities, directly benefiting PHI through enhanced collaboration and access to groundbreaking research. The summit served as an invaluable platform to foster new partnerships, deepen existing ones and open up new opportunities. The NSF announced several competitive grants limited to $500,000 per grant through WFIRM, aiming to support WFIRM’s partner and propel innovative projects and technologies forward. Such key engagements enhance PHI’s visibility and position us at the forefront of regenerative medicine innovation.
Finally, the upcoming redemption of warrants of series TO 4 could yield up to 20,8 million SEK. If fully subscribed, how will the proceeds be used?
– The proceeds from the TO 4 warrants are intended as investments in our regenerative medicine initiatives and in enhancing our ongoing product development. The proceeds continue the momentum from previous funding rounds, which started with the rights issue in 2022 and then continued with the TO 3 warrants in 2023. Our strategic partnership with Altium to scale our sales processes and global distribution networks allows us to focus in-house on our innovation capabilities and product development and drive our mission in regenerative medicine.
Watch Steve Darling from Proactive Investors interviewing Patrick Eschricht below.
